Ofcom proposes blocking new Openreach discount scheme

(Sharecast News) - Ofcom proposed blocking a new Openreach discount scheme on Tuesday, over concerns it could harm competition in the UK broadband market, in what would be the regulator's first intervention to stop one of the BT subsidiary's commercial offers.

The 'Incremental New to Openreach Offer' would give internet service providers discounts of up to £9.50 per customer for as long as 30 months when they bring additional full-fibre users onto the Openreach network.

The regulator said the pricing may not be fair and reasonable and could make it difficult for rival networks to recover their costs, particularly while competition in the wholesale full-fibre market remains developing.

Ofcom said it does not currently plan to intervene in Openreach's other notified offers, and will consult until 27 August before making a final decision by the end of September.

At 0919 BST, shares in BT Group were up 0.23% at 199.3p.

Reporting by Josh White for Sharecast.com.